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the HERALD Money Matters Wednesday January 1992 An RRSP must maximize retirement income Ive got the best RRSP plan your friend says Lets examine some of the best plans Many are offered by savings institutions such as banks trust companies credit unions etc Others are offered by life insurance companies stock brokers who now call themselves investment ad visors and mutual fund com panies The best may be the savings institution where we feel safe our money is secure because the principal amount not the rate of return is guaranteed by the CDIC Canada Deposit In surance Corporation up to Now if I gave my money to a financial institution who was going to pay me rent interest for the money and then rent it out to someone else who I dont know at a higher rent then you bet I would want an ironclad guarantee The be from a stock broker investment advisor If you are a sophisticated investor and have the time to study all of the factors involved to make your own investment decisions know ing what to do and when and are usually right Then and only then should you manage your RRSP yourself You can then have dozens of stocks bonds strip bonds mortgage backed securities term deposits etc even a mortgage in your The best may be a mutual fund There are many dif ferent kinds of mutual funds but they all have one thing in com mon and that is professional management of your money The managers of these funds do nothing else they probably work longer hours at their job than most of us The only way they can improve their incomes is to provide superior investment per formance This writers opinion is that the best RRSP is the one that gives the greatest rate of return with the element of safety that you desire And the one that best fits that descriptor we believe is a mutual fund RRSP program either regular or for the more sophisticated selfdirected Why Well for one thing you can combine most of the benefits of all of the options in one plan For those who absolutely in sist on Guaranteed security what could be better than Government of Canada Bonds or Treasury Bills You can have more than invested and they are still backed by the federal government You can find this type of investment in a bond andor money market mutual fund Over the years these funds have matched or exceeded GIC returns and the money is not locked in for five years There are real estate funds where the managers hold income producing properties leased to triple A tenants on long term leases The properties are diver sified geographically and by class of real estate You could not hope to achieve this on your own unless you had many millions to invest The value of the fund does not fluctuate as do equity funds and returns have compared very favorably with and the money is not locked in Then there is my favorite equi ty mutual funds which over the long haul have performed better than other investment choices Sure they fluctuate up and down in the short term but some of the best of them still show 15 per cent per year average returns over the long term You can be diversified and have a mix of mutual funds of all types to meet your objectives Your money is not locked up for fixed periods You can switch from one fund to another if you like You will usually be working with an independent financial planner who can help you chose the right fund for you from the hundreds of different funds available He will prepare a writ- ITS YOUR MONEY Paul J ten financial plan taking into ac count your tax position financial objectives and insurance pro gram all at no added cost to you In my view the best reason to have a selfdirected is to incorporate more international investment choices in your sav ings program The big pension managers have been lobbying the federal government for years lo allow more foreign investment in Canadian pension funds time has proved that international in vestment has tended to provide greater returns than domestic the stalling In parlia ment came to an end in December 1991 and the regula tions allowing increased foreign content in and pension funds became law In spite of the daily dose of bad news being dumped on us by some of the media what is hardest to take is the fact that this recession has been with us twice as long as the reces sion months as opposed to months in In spite of the difficulty of accepting that the recession will end sooner than many people think the history of the past twenty years indicates that this is a time in the equity markets similar to 1974 and the best investment opportunities in 20 years What is your favorite in vestment program Does it have additional or better features Remember all RRSPs save taxes but the most important thing is a long term plan to max imize your retirement income Are you going to rush to the nearest bank in the last week before the deadline and con tribute as much as you happen to have at the moment at the cur- Money Talk Our 1992 Financial Edition Our 6th Annual Financial Edition is almost here This very successful special edition has been growing steadily In size as the community recog nizes the need to manage their financial positions more professionally This supplement will feature related Canadian editorial copy on Financial Plan ning and Management as well as local and national financial advertisers With the implementation of the GST and the threat a deepening recession the focus on proper money management has increased making advertising your financial services even more important IMPORTANT DATES Publication Date Wednesday February 12th 1992 Deadline Wednesday February This special supplement will be distributed to over 1 homes In the Halton Hills area and we are now ottering a reduced line rate to our non- regular advertisers If you or your company would like more infor mation about this feature edition or if you wish to participate please contact Mr Cecil Jordan at 8772201 TO the HERALD HOME NEWSPAPER OF HALTON HILLS ESTABLISHED 1866 8772201 rent low rates or do you have an plan that works for you days a year and is structured to achieve your own future financial independence And what rate of return have you settled for After all a person who sets aside 3000 per year in an for 20 years at a 10 per cent rate of return will have a value of 171825 If you choose a mutual fund program and it averages per cent as they have in the past youll have 307330 Almost twice as much Which would you rather retire with For a free booklet on In vesting and a chart comparing the performance of an actual mutual fund with a 10 per cent in vestment over the last years contact Peter C Regal Capital Planners Ltd 10 Pagan Drive Georgetown On tario or phone 8777216 Paul J is the author of the best seller Why I Invest in Mutual Funds and President or Regal Capital Planners Ltd If you qualify you can get a cheque for 85 of the first 300 of your tax refund and 95 of the rest Plus your tax return will be prepared at no extra charge So why wait for the refund cheque to arrive by mail Ask about Cash Back at HR Block and get your refund fast 7 James St Georgetown 416 8737855 141 How do they manage to do it Initial 10000 investment WE MANAGE TO OUTPERFORM Mill chart the performance Trimark Canadian Fundi 10 year average annual compound to October 31 The I and year returns are and respectively Trior rales relied reinvested exclude sales charge and administration lees and have been audited by Ernst Young Chartered Accountants Ail results arc based on paw performance and art not indicative future results Fundi are by prrnpeciui only PETER MBA Phone REGAL CAPITAL PLANNERS LTD 10 Drive Georgetown On OVER YEARS OP HELPING CANADIANS REACH FINANCIAL INDEPENDENCE